MARKET WATCH: Energy prices recover in see-sawing markets

Energy prices recovered strongly July 12 with front-month futures contracts for West Texas Intermediate and North Sea Brent each posting 1% gains as both the Dow Jones Industrial Average and Standard & Poor’s 500 Index closed at new highs.

Although the political turmoil in Egypt has been relatively quiet since the start of religious observance of Ramadan, geopolitical concerns still outweigh the possible effect on the dollar and market speculation of the US Federal Reserve damping down its economic stimulus spending.

Meanwhile, the National Bureau of Statistics said July 15 China’s implied oil demand rose to 9.94 million b/d in June, up 5% for the month and 10.7% from a year ago. Although escalation of China’s demand growth “was amplified by a low base,” analysts with Barclays Capital Commodities Research said it is “on track to grow 5% in 2013 as we forecasted, and we expect imports to improve along with demand.”

However, they said, “We do not expect underlying demand to keep rising at double-digit levels in coming months. As China enters the slow summer months for manufacturing and as harvesting ends, diesel demand is likely to soften sequentially. Higher runs could quickly build inventories in this environment of softer demand. With China’s gross domestic product expected to grow 7.4% this year, oil consumption is going to feel the strain of struggling industrial activities.”

China’s increased demand in June was driven by a sharp increase in refinery runs, which climbed 10.1% from a year ago to 9.66 million b/d. “This surge reverses months of gradually slower growth, which fell to 1.1% year-to-year in May,” said Barclays Capital analysts. So far this year China’s oil demand is 4.9% higher than in the first half of 2012. “Crude imports had grown only 2% year-to-year and fell 250,000 b/d month-to-month to 5.41 million b/d, suggesting that China has drawn crude stocks in June,” analysts said.

In other news, the India Times website reported India has replaced the US as the largest market for Nigerian crude, due in part to diminished demand for that crude among US East Coast refineries.

Energy prices

The August contract for benchmark US light, sweet crudes regained $1.04 to $105.95/bbl July 12 on the New York Mercantile Exchange. The August contract took back $1.17 to $105.55/bbl. On the US spot market, WTI at Cushing, Okla., also was up $1.04 to $105.95/bbl.

Heating oil for August delivery recovered 3.44¢ to $3.03/gal on NYMEX. Reformulated stock for oxygenate blending for the same month jumped 9.61¢ to $3.12/gal.

The August natural gas contract rose 3.1¢ to $3.64/MMbtu on NYMEX. On the US spot market, gas at Henry Hub, La., continued its decline, down 2.7¢ to $3.62/MMbtu.

In London, the August IPE contract for Brent was up $1.08 to $108.81/bbl. The new front-month August contract for gas oil gained $6.75 to $916.25/tonne.

The average price for the Organization of Petroleum Exporting Countries’ basket of 12 benchmark crudes inched up 1¢ to $104.82/bbl. So far this year, OPEC’s basket price has averaged $104.95/bbl.

Contact Sam Fletcher at samf@ogjonline.com.

Related Articles

Puma Energy completes purchase of Murco’s UK refinery, terminals

07/02/2015 Singapore-based Puma Energy Group Pte. has completed its purchase of UK midstream and downstream assets from Murco Petroleum Ltd., a subsidiary of ...

BP to settle federal, state Deepwater Horizon claims for $18.7 billion

07/02/2015 BP Exploration & Production Inc. has agreed in principle to settle all federal and state claims arising from the 2010 Deepwater Horizon inciden...

MARKET WATCH: NYMEX oil prices plummet on crude inventory build, Iran deadline extension

07/02/2015 Oil prices plummeted more than $2/bbl July 1 to settle at a 2-month low on the New York market after a weekly government report showed the first ri...

API to issue recommended practice to address pipeline safety

07/01/2015 The American Petroleum Institute expects to issue a new recommended practice in another few weeks that addresses pipeline safety issues, but the tr...

Shell Midstream Partners takes interest in Poseidon oil pipeline

07/01/2015 Shell Midstream Partners LP has completed its acquisition of 36% equity interest in Poseidon Oil Pipeline Co. LLC from Equilon Enterprises LLC, a s...

MARKET WATCH: Oil prices decline as US crude inventories post first gain in 9 weeks

07/01/2015 Oil prices on July 1 surrendered much of their gains from the day before after the release of a government report showing the first rise in US crud...

FWS issues Shell letter of authorization on Chukchi Sea lease

07/01/2015 The US Fish & Wildlife Service issued Shell Gulf of Mexico Inc. a letter of authorization (LOA) related to the potential disturbance of polar b...

USGS: Water usage for fracturing varies widely across shale plays

07/01/2015 The volume of water required to hydraulically fracture wells varies widely across the country, according to the first national analysis and map of ...

Case for Keystone XL has grown stronger, TransCanada tells Kerry

06/30/2015 Canada is taking strong steps toward combating climate change, and the proposed Keystone XL pipeline crude oil pipeline remains in the US national ...
White Papers

Three Tips to Improve Safety in the Oil Field

Working oil fields will always be tough work with inherent risks. There’s no getting around that. Ther...
Sponsored by

Pipeline Integrity: Best Practices to Prevent, Detect, and Mitigate Commodity Releases

Commodity releases can have catastrophic consequences, so ensuring pipeline integrity is crucial for p...
Sponsored by

AVEVA’s Digital Asset Approach - Defining a new era of collaboration in capital projects and asset operations

There is constant, intensive change in the capital projects and asset life cycle management. New chall...
Sponsored by

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by

Asset Decommissioning in Oil & Gas: Transforming Business

Asset intensive organizations like Oil and Gas have their own industry specific challenges when it com...
Sponsored by

Squeezing the Green: How to Cut Petroleum Downstream Costs and Optimize Processing Efficiencies with Enterprise Project Portfolio Management Solutions

As the downstream petroleum industry grapples with change in every sector and at every level, includin...
Sponsored by

7 Steps to Improve Oil & Gas Asset Decommissioning

Global competition and volatile markets are creating a challenging business climate for project based ...
Sponsored by

The impact of aging infrastructure in process manufacturing industries

Process manufacturing companies in the oil and gas, utilities, chemicals and natural resource industri...
Sponsored by
Available Webcasts


OGJ's Midyear Forecast 2015

When Fri, Jul 10, 2015

This webcast is to be presented by OGJ Editor Bob Tippee and Senior Economic Editor Conglin Xu.  They will summarize the Midyear Forecast projections in key categories, note important changes from January’s forecasts, and examine reasons for the adjustments.

register:WEBCAST


Predictive Analytics in your digital oilfield - Optimize Production Yield and Reduce Operational Costs

When Tue, Jul 7, 2015

Putting predictive analytics to work in your oilfield can help you anticipate failures, plan and schedule work in advance, eliminate emergency work and catastrophic failures, and at the same time you can optimize working capital and improve resource utilization.  When you apply analytic capabilities to critical production assets it is possible to reduce non-productive time and increase your yield.

Learn how IBM's analytics capabilities can be applied to critical production assets with the goal of reducing non-productive time, increasing yield and reducing operations costs.

register:WEBCAST



On Demand

Cognitive Solutions for Upstream Oil and Gas

Fri, Jun 12, 2015

The oil & gas sector is under pressure on all sides. Reserves are limited and it’s becoming increasingly expensive to find and extract new resources. Margins are already being squeezed in an industry where one wrong decision can cost millions. Analyzing data used in energy exploration can save millions of dollars as we develop ways to predict where and how to extract the world’s massive energy reserves.

This session with IBM Subject Matter Experts will discuss how IBM Cognitive Solutions contribute to the oil and gas industry using predictive analytics and cognitive computing, as well as real time streaming for exploration and drilling.

register:WEBCAST


The Alternative Fuel Movement: Four Need-to-Know Excise Tax Complexities

Thu, Jun 4, 2015

Discussion on how to approach, and ultimately embrace, the alternative fuel market by pulling back the veil on excise tax complexities. Taxes may be an aggravating part of daily operations, but their accuracy is crucial in your path towards business success.

register:WEBCAST


Emerson Micro Motion Videos

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected